A reduction in supply and continued demand from young professionals and students has led to a 19.6% rental increase in Manchester in the year to June 2023, despite the rising cost of debt and cost of living pressures.
The “Big Six” research by JLL found that average residential rental values rose by 14.3% across Manchester, Birmingham, Leeds, Bristol, Edinburgh and Glasgow over the year.
Manchester and Glasgow saw the greatest fall in rental stock reaching the market – down 23% and 24% respectively compared with 2019 – so it is unsurprising to see that they have also recorded some of the highest annual rental growth.
Over the year to June, Birmingham saw a 17.9% rental increase, Bristol a 13.4% rise, Edinburgh 18%, Glasgow 12.7% and Leeds 3.9%.
Marcus Dixon, director of UK residential research at JLL, said: “Younger residents and students are continuing to drive demand across the UK’s regional cities, as they prioritise the neighbourhood in which they live and access to key amenities. This is a trend that we expect to continue, particularly as young professionals seek employment opportunities outside the capital due to cost of living pressures.
“What has become clear through our analysis is that neither the sales nor rental market is currently able to keep up with demand. With fewer landlords entering the market, and the rate of new-builds slowing, government intervention is needed to re-stimulate the market and ensure that there are enough homes for the people that need them.
“By creating opportunities for people to live and work in our regional cities, it will stimulate further inward investment and contribute to the success of our cities long-term.”
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